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Hi all,
I have a problem running panel data when using Dumitrescu-Hurlin causality test. Why does it say "near singular matrix in unlimited equation for cross section 1". How to solve it? I have only 2 variables.

If the problem is in high collinearity or nearly identical values, then how to remove multicollinearity if my variable is only 2?
Thank you.

You don't have enough time observations.

Dear All
Apologies if this question has been addressed before. I am looking at the causality between government expenditure and inflation in panel data using Toda and Yamamoto (1995) causality test. I have seen many blogs e.g. Dave Glides of T-Y causality on time series data but none on panel data. Can someone guide me on the steps to follow on E-views?

Regards,

Khethang